Indian rupee opened weak at 60.44 and then made a intraday low of 60.50 due to firm overseas dollar movement and weak Asian currencies after surprise cut by European central bank in its official interest rates.
However fresh dollar sales by banks and exporters along with some recovery in Asian currencies helped rupee to recoup most of its intraday losses and make a high of 60.3750. Dollar demand at lower levels was seen capping further gains for rupee. It closed at 60.39 weaker by 0.06%.
Rupee currently is trading in a range between 60.30 & 60.70. Range needs to be broken for any clear direction, however as far 60.70 holds we can expect rupee to appreciate towards 60.10 levels in the near term.
By Hemal Doshi, Geojit Comtrade Ltd.
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